U.S. President Trump said inf has fallen sharply under his administration and household and corporate incomes have risen significantly.

EFG Bank analyst Stefan Grach said in a report that elevated euro-area government bond yields have raised borrowing costs, weighing on activity and damping inflation, which reduces the case for ECB rate hikes. He added that political turmoil in France is hurting business activity and suppressing consumer demand. Grach said the ECB must assess whether the lagged pass-through from higher energy prices will keep inflation elevated or whether tighter borrowing costs will offset those pressures.

Greek prime minister called on the EU to deploy additional naval forces to the Red Sea "Aspides" operation.